4. Specification detail
The meaning of the term ‘ethics’ in
business and the complexity of moral
issues affecting organisations
Possible trade-off between ethics and
profit
The importance of the potential effects of
pressure group activity
5. Legal Vs Ethical
Being legal means operating within the
law.
Being Ethical means doing what is right.
Example: Trading Standards : Here
6. Definition of Business Ethics
Businesses which follow moral principles.
Ethical behaviour covers every aspect of
business including:
Who they buy their supplies from
How they treat its employees
How they act toward their competition
Their impact on the environment
Their impact on the local community
7. TASK:
What impact can businesses have on the
environment and communities? Here
Using
the following examples, in pairs
decide what you could do to make your
business more ethical.
18. Trade off between
ethics and profit
Go Ethical: An advertising company who refuse to
work for cigarette companies or clothes stores who
produce items in a sweat shop.
Go Profitable: An oil company, Total, had a fire
which ignited 300 tonnes of petrol in the UK. Some
residents received compensation (money for their
loss), but many were left. 1,300 claims were left
outstanding. £370million.
Go Both: By becoming more ethical, you will
attract customers with a ethical conscience.
Product trial and repeat purchase.
20. The importance and effects of
pressure group activities
Pressuregroup: An organised group that seeks to
influence government, legislation or business
behaviour.
E.g. Greenpeace, Amnesty International,
Searchlight
Nike suffered serious sales decline when its
expensive trainers were produced by low wage
far Eastern factories. Pressure groups lead
consumers to boycott the business.
Here and Here
